Crypto.com CEO Demands Probe Into $19B Liquidation Event

The cryptocurrency market experienced one of its most devastating liquidation events in history over a single weekend, with more than $19 billion wiped out within 24 hours. The massive sell-off affected over 1.6 million traders who saw their positions liquidated in what became a record-setting market collapse. The timing coincided with former US President Donald Trump’s announcement of new tariffs on China, which triggered double-digit percentage declines across Bitcoin and essentially all altcoins.

According to multiple reports circulating on social media platform X, the actual liquidation figures could be significantly worse than officially reported. Speculation has emerged that major centralized exchanges (CEXs) may be underreporting the true extent of the damage, with rumors suggesting that a prominent industry name may have suffered catastrophic losses. The scale of the liquidation event has raised serious questions about market stability and exchange transparency during periods of extreme volatility.

The market carnage was particularly brutal for alternative cryptocurrencies, with some tokens experiencing near-total collapses. On Binance, one of the world’s largest cryptocurrency exchanges, assets like Atom crashed by up to 99.9%, while the majority of altcoins plummeted by 60-70%. These declines far exceeded previous market corrections, indicating an unprecedented level of selling pressure and liquidity evaporation.

Compounding the market turmoil, several exchanges experienced significant technical failures during the peak volatility. Multiple platforms failed to execute orders for periods lasting up to 120 minutes, leaving traders unable to manage their positions or exit deteriorating trades. These operational failures occurred during the most critical moments of the market collapse, potentially exacerbating losses for millions of users who found themselves trapped in rapidly declining positions without the ability to react.

Kris Marszalek, CEO of Crypto.com, has taken a leading role in demanding regulatory intervention and industry accountability. In his public statements, Marszalek urged watchdogs to conduct a thorough review of exchange practices during the crisis, emphasizing that regulatory bodies have a fundamental responsibility to protect consumers and ensure market integrity. His call for investigation comes amid growing concerns about whether exchanges maintained proper operational standards throughout the market collapse.

Marszalek has outlined several critical questions that he believes exchanges must answer for the millions of affected users. These include whether all trades were priced correctly and in alignment with market indexes, the adequacy of trade monitoring and anti-money laundering programs during the turmoil, and whether internal trading teams maintained proper separation from customer operations. The Crypto.com CEO’s emphasis on Chinese walls—internal barriers preventing information flow between different departments—highlights concerns about potential conflicts of interest during extreme market conditions.

The $19 billion liquidation event represents a watershed moment for cryptocurrency regulation, with industry leaders now openly calling for greater oversight. As Marszalek noted, the scale of user losses—with $20 billion in liquidations and countless traders suffering significant financial damage—demands a comprehensive examination of exchange practices. The coming regulatory response could shape the future of cryptocurrency market structure and consumer protection standards for years to come.